It is not needed, not fitting here, that a general
argument should be made in favor of popular institutions; but there is one point, with its
connexions, not so hackneyed as most others, to which I ask a brief attention. It is the
effort to place capital on an equal footing with, if not above labor, in the
structure of government.

It is assumed that labor is available only in connexion
with capital; that nobody labors unless somebody else, owning capital, somehow by the use
of it, induces him to labor. This assumed, it is next considered whether it is best that
capital shall hire laborers, and thus induce them to work by their own consent, or buy
them, and drive them to it without their consent. Having proceeded so far, it is naturally
concluded that all laborers are either hired laborers, or what we call slaves. And
further it is assumed that whoever is once a hired laborer, is fixed in that condition for
life.

Now, there is no such relation between capital and labor
as assumed, nor is there any such thing as a free man being fixed for life in the
condition of a hired laborer. Both these assumptions are false, and all inferences from
them are groundless.

Labor is prior to, and independent of, capital. Capital
is only the fruit of labor, and could never have existed if labor had not first existed.
Labor is the superior of capital, and deserves much the higher consideration.

Capital has its rights, which are as worthy of
protection as any other rights. Nor is it denied that there is, and probably always will
be, a relation between labor and capital, producing mutual benefits. The error is in
assuming that the whole labor of community exists within that relation.

A few men own capital, and with that avoid labor
themselves, and, with their capital, hire or buy another few to labor for them.

A large majority belong to neither class -- neither work
for others, nor have others working for them. In most of the southern states, a majority
of the whole people of all colors are neither slaves nor masters; while in the northern a
large majority are neither hirers nor hired. Men with their families -- wives, sons and
daughters -- work for themselves, on their farms, in their houses, and in their shops,
taking the whole product to themselves, and asking no favors of capital on the one hand,
nor of hired laborers or slaves on the other.

This is an excerpt from Lincoln's Annual Message to Congress, December
3, 1861.